SANT LAL GUPTA vs MODERN COOP. G.H. SOCIETY LTD. .

The Supreme Court held that the Delhi High Court erred in interpreting Rule 36(3) of the Delhi Co-operative Societies Rules, 1973, by deeming the Society's resolution for expulsion approved after six months, despite no such provision in the Delhi Co-operative Societies Act, 1972. The Court emphasized that the Registrar's decision must be based on the statutory framework, and the High Court's extension of the approval period was a misinterpretation of the law. Consequently, the Supreme Court allowed the appeal, reinstating the orders of the Financial Commissioner and the Registrar, thereby upholding the expulsion of the appellants.